INDEX

Page

Current Status of Shipyards, 1974, hearings are printed in three parts: Naval

Shipyards, Private Shipyards, and Governmental Actions
NAVAL SHIPYARDS- Part 1

1-607
PRIVATE SHIPYARDS— Part 2.-

609–1162
GOVERNMENTAL ACTIONS- Part 3

1163-1554

CHRONOLOGICAL LIST OF HEARINGS

Wednesday, September 18, 1974.
Thursday, September 19, 1974.-
Monday, September 23, 1974.-
Thursday, September 26, 1974.
Thursday, October 10, 1974..
PRINCIPAL WITNESSES WHO APPEARED IN PER-

SON OR SUBMITTED WRITTEN STATEMENTS

1163
1187
1261
1469
1537

Blackwell, Robert J., statement of

1187
I. Description of Maritime Administration program as it affects
shipyards

1187
A. Statutory responsibility.

1187
B. Basic changes in the maritime program for the 1970's - 1188
C. Results achieved under the maritime program for the
1970's

1189
II. Impact of MarAd programs on shipyards -

1192
A. Comparison of Navy and private work before and after
the Merchant Marine Act of 1970..

1192
B. Arrangements for coordination of Navy and MarAd
shipbuliding, within the executive branch

1193
C. Shipyard modernization and capacity expansion for
naval and merchant construction...

1193
D. Results of MarAd Shipyard R. & D. programs.

1196
III. Success in achieving series production

1200
A. Adoption of MarAd designs and series production..

1200
B. Need for negotiated procurement.

1202
C. Claims experience and escalation provision of new
contracts.

1203
IV. Shipyard performance

1204
A. Delivery time

1204
B. Ship quality -

1205
C. Impact of OSHA.

1206
D. Pollution abatement requirements.

1207
E. Navy/private shipyard capability analysis.

1207
V. Shortages

1209
A. Manpower

1209
B. Material, especially steel.

1211
C. Yard capacity

1216
VI. Program outlook.

1231
A. Expected number, type, size of ships to be constructed
in the future

1231
B. Impact of shortages.

1235
C. Potential to export ships. -

1235
i

ii

Page 1235 1235 1236 1236

1237

1237 1238

1238 1240 1240 1243 1245

1192 1194 1194 1210 1212 1215 1216 1217 1225 1227 1227

1228 1230 1232 1232

Blackwell, Robert J., statement of—Continued
VII. Nuclear-powered merchant ships

A. Description of current MarAd program.
B. Shipyards likely to participate in nuclear construction.
C. Potential impact on Navy nuclear programs--
D. Need for mobilization ship designs (updated period-

ically) --
E. Mobilization ship construction program updated

annually
VIII. National security considerations-

A. Adequacy of the U.S. merchant fleet to meet national

security needs.
B. Adequacy of the shipyard mobilization base-
C. Merchant ship defense features.

D. National defense reserve fleet.
Conclusion and recommendations.
Exhibits:

1. Comparison of MarAd impact
2. Shipyard investments made since the 1970 act-
3. Facility improvements since the 1970 act-
4. U.S. shipyard employment.
5. Production delays due to steel shortage.
6. Requests for special priorities assistance
7. DMS inquiries prior to contract-
8. Ship construction capability by ship type-
8A. Summary-ship construction capability

9. Shipyard status..
10. Major U.S. private shipyards.
11. Major U.S. private shipyards-number of shipbuilding ways

by length
12. Inventory of ship repair and conversion facilities...
13. Projection of U.S. ship construction --
14. Ship construction contract projection fiscal year 1976-80..
15. Tanker construction requirements resulting from the Alaska

pipeline -

16. New tankers required to carry petroleum imports. Clements, Hon. William P., Jr., statement of

I. Introduction..
II. The major elements of seapower.
III. Current appraisal.
General principles - -
What should be done?:

By the Congress-
By the Secretary of Defense.
By the Secretary of the Navy

By the shipbuilding industry
Hewitt, William, statement of -
Holloway, Adm. James L., statement of -

Annual report on the status of shipbuilding and ship repair industry-
Construction or conversion program.
Construction subsidies and priorities.

Merchant ship subsidies and priorities -
Contracting procedures and program administration.
Naval versus private shipyards.
Primary mission.
Proposed 5-year shipbuilding program.
Shipwork allocation to private shipyards.
Shipyard capacity and capability
Strategic overview..
Status of major skills -
Five-year shipbuilding program
Ten major problem areas:

Adequacy of trained manpower.
Concentration of new construction.-
Construction subsidies, priorities, and steel allocation.
Disparity in costs to Government
Inflation impacts on contracts/estimates--

1233 1234 1537 1542 1543 1544 1539

1540 1541 1541 1541 1163 1488 1512 1520 1524 1525 1518 1517 1488 1534 1518 1511 1488 1514 1489

1494 1493 1504 1499 1503

Holloway, Adm. James L., statement of-Continued
Ten major problem areas-Continued

Page
Long range planning----

1492, 1508 Navy contractual procedures and administration

1501 New construction in naval shipyards.

1497 Repairs/alterations in private yards.

1495 Shipyard mobilization requirements.

1507 Middendorf, Hon. J. William, statement of .

1469 ASBCA shipbuilding cases over $1 million

1476 Charts: 1. BLS shipbuilding labor.

1472 2. SCN funding-

1473 3. Shipbuilding claims summary

1478 4. Claims appeal summary

1479 Examples of shipbuilding problems and corrective action taken.. 1482 Individual claims settlement/withdrawals..

1476 N MARC members industry affiliation -

1484 Out-of-court settlements of shipbuilding appeals.

1477 Shipbuilding claims over $1 million..

1475 Rickover, Adm. A. G., statement of_

1262 Access to records

1291 Accounting: Annual financial reports of shipbuilders.

1290 Claims postpone reporting losses

1292, 1327 Cost account standards

1294, 1407 Flexible accounting practices.

1292-1293 Need for accurate financial reporting

1293 Percentage of completion accounting

1291 American Bar Protective Association.

1298 Bullying, see Coaxing, etc. Business Week -

1284 Changes: As a basis for claims.

1264, 1321 Developing and printing photographic film.

1321 Experience with during World War II.

1264 Prepricing of changes discourages claims.

1320 Shipyard position on.

1321, 1325 Claims: Anti-claims clauses.

1324, 1403 Basis for claims..

1264, 1326, 1328 Change orders, relationship to --

1264, 1320 Contractor's proposals for settling claims

1295 Delays in settling

1296, 1322 Exaggerated claims.

1320, 1326 False claims--

1294, 1323, 1346 Handshake settlements.

1295 Impact claims

1267 Improvements in claim

1319 Legal entitlement of..

1319, 1327, 1329 Need for outside legal counsel.

1323, 1346 Omnibus claims ..

1263, 1264, 1325 Pressure to settle quickly-

1295, 1328 Recommendations for processing claims

1320, 1345 Settling for 30 cents on the dollar.

1295 Sufficiency of data supporting claims.

1322, 1325 Using ad hoc panels to settle claims..

1329 Claims lawyers: Advocate management settlement of claims

1295 Compared to madams, courtesans, etc..

1298 Contingent fees.

1298 Lawyers change sides

1296 Legal ethics..

1297 No one writes books about.

1298 "Coaxing, cajoling, bullying, arm twisting''

1266 Cuneo, G.

1296 Defense Contract Audit Agency

1291, 1314

iv

Rickover, Adm. H. G., statement of Continued 2-12 rata Page Escalation...

160 mm

1263, 1267, 1269 Financial Accounting Standards Board..

1293 Handshake settlements, see Claims. Inflation.---

............... 1263, 1267, 1270 Inspection, see Surveillance. Madams, see Claims lawyers.

STTTT sildebrangidae Maritime Administration:

DETTE ET UW Hobi Contracts of.-na TY125 bedaide A

1318 Defense priorities and MARAD subsidies.

1289 Nuclear-powered commercial ships--

1347 Subsidized shipbuilding program.--

1262, 1284 Navy bureaucracy-

1403

300C Newport News Shipbuilding and Dry Dock Co.: Complaints of Navy surveillance

abfudaida 1299-1300, 1306 Manpower planning and construction of Nimitz.

1271, 1317 Manpower problems -

1272, 1317, 1407 Navy and commercial work at Newport News

1285

S525 1266, 1317
Navy contracts with.--
Nimitz construction estimate-

1315-1317 Recruiting practices -

20105510

1315 Tenneco agreement on manningNorfolk Naval Shipyard -

atsirgarinnar. 12

1285, 1288

1315 Priorities:

2013

qan --

by 1904
Commercial tankers.
Defense priority ratings for commercial ships------ Serebs

101 1284, 1286, 1290, 1347

1284 DoD policy on

1284 000Ronnoncen Impact of Defense priorities

1287 and Newport News

1286-1287 Office of Preparedness, administration of

1285–1287, 1289 Priorities for commercial ship materials.

1288 Procurement deficiencies--

1302, 1306 Profits:

2011-2012 Accounting practices affect profits..

diq-bus gatve 10

1291-1293 At Newport News -

210

1266 Defense officials hear of poor shipbuilder profits

carrionanost

1265 Seven percent profit on costs

Piret

1263 Shipbuilders want Government guarantees of

of-a-ko-and-star

1263 Stockholders see glowing profit reports

1293

---Progress payments

1267, 1293 Rickover, H. G.:

En 350-0110-
Engineering speech, comments on is not autogona & TODO

1275 Hires female engineer.

Sim 10

1265 Opening remarks

20150619900**

1263 Recommendations for improving weapons system acquisition

1348 “Role of Engineering in the Navy”.

1296, 1356, 1403 To Rotation of personnel: Government claim defense personnel changes relativament

1314 Lawyers

10 THIS

1296 Navy rotation of personnel.

105 1915

1296, 1314, 1348, 1401 Shipyard recruiting practices.

1315

STJEDN1Securities and Exchange Commission

1977 1976

1293 Shipbuilders:

3993010 TOT 20 50905511
Annual financial reports-
Blah od 0 do OS Tol nails

1290 Contract negotiations with Navy SOGO SAD TOITE

1316 Cost overruns of

1119 2000

1270, 1316 Financial complaints of_

1265, 1291 Government surveillance of operations

1299 220 Need for improved purchasing operations. ASTM D255

1302 ce Testimony apparently derived from common source

grano

1262 Shipbuilding:

STORE
Five-year shipbuilding authorization program

Lawidts les 1273, 1406 zusi Navy and commercial shipbuilding contracts.

1318 asi Present situation

1262 OOST

Series construction MELI Ship construction planning

RESTS

1406 Title VIII— Nuclear Navy

1273, 1346 Wage rates in

1405

- 1405

V

Page 1270-1271

1264

1274 1270, 1317, 1404

Rickover, Adm. H. G., statement of Continued
Shipyards:

New construction in Navy shipyards.
Need for Navy yards -
Nuclear ship construction industrial base.

Poor shipyard productivity
Subsidies:

Congressional rejection of---
Maritime Administration subsidies.

and Priorities-Surveillance and Inspection:

Government surveillance of shipbuilder operations.
Inspections by Nimitz precommissioning crew -

Role of Government inspectors.-vom Baur, F. T.

Zimmerman, Miss ..
Schulte, Howard J., statement of

1263 1262, 1284

1289

1299-1301

1306

1300 1264, 1295-1296

1265 1181

iii